25 March 2025
If you are covering Shell’s latest market update, please read the following comment from Maurizio Carulli, global energy and materials analyst at Quilter Cheviot:
"Shell’s latest update, ahead of its Capital Market Day, represents a further shift toward rewarding more shareholders. By increasing shareholder distributions to 40 to 50% of operating cash flow and raising its structural cost reduction target to between $5-7bn by 2028, Shell is showing renewed discipline in how it allocates capital and run its operations.
The increase in payouts and the tighter capital spending range of $20-22bn per year is a clear positive to shareholders. Similarly, the decision to explore strategic or partnership opportunities in its US chemicals business also shows a sharper focus on efficiency and returns.
Under Wael Sawan’s leadership, Shell is showing commitment to value creation, free cash flow growth and operational improvement. This is the correct strategy in an environment of volatile oil price and geopolitical uncertainty."
